Tools & Calculators
Rental Yield Calculator for Germany
Calculate gross yield, net yield, and cash-on-cash return for your German rental property investment.
Property Details
Enter your investment parameters
The net rent excluding Nebenkosten. Check the local Mietspiegel for realistic estimates.
Typically 7–12% of purchase price. Use our closing cost calculator for an exact figure.
Calculate exact closing costs →Annual Costs (Non-recoverable)
Costs you cannot pass on to tenants
The portion of Hausgeld not chargeable to tenants (Verwaltung, Instandhaltungsrücklage). Typically 30–50% of total Hausgeld.
Extra reserve beyond the WEG Instandhaltungsrücklage. €0 if you trust the WEG reserve is sufficient.
Percentage of annual rent lost to vacancy between tenants. 2–5% is typical in German A-cities.
Check your local Finanzamt or the previous owner's Grundsteuerbescheid.
Building insurance not covered by Hausgeld. Set to €0 if included in Hausgeld.
Financing
Leave blank for an all-cash purchase
Typically 70–90% of purchase price. Banks usually don't finance closing costs.
Gross rental yield
4.11%
Annual rent ÷ purchase price
Net rental yield
3.00%
Net income ÷ total investment
Cash-on-cash return
-3.65%
Cash flow ÷ equity invested
Monthly mortgage payment
€1,283
Monthly cash flow
€-319
Total investment
Yield comparison
A gross yield above 5% is generally considered good for German residential property.
Estimate only
These figures are illustrative and do not account for income tax, depreciation (AfA), or rent increases. Actual returns depend on your personal tax situation and property specifics. Consult a Steuerberater for tax-optimised calculations.
Calculate your mortgage payments
Model monthly payments, Restschuld, and full amortization for your Annuitätendarlehen.
Estimate your closing costs
Grunderwerbsteuer, notary, land registry, and agent fees for all 16 German states.
Frequently Asked Questions
What is a good rental yield in Germany?
A gross rental yield (Bruttomietrendite) of 4–6% is considered good for German residential property. In major cities like Munich or Frankfurt, yields of 3–4% are common due to high purchase prices. Smaller cities and B-locations often offer 5–7%+ gross yields but may carry higher vacancy risk.
What is the difference between gross and net rental yield?
Gross yield is simply annual rent divided by purchase price — it's a quick comparison metric. Net yield subtracts all non-recoverable costs (Hausgeld, vacancy, Grundsteuer, insurance) and includes closing costs in the total investment. Net yield gives a much more realistic picture of your actual return.
What is cash-on-cash return and why does it matter?
Cash-on-cash return measures the annual cash flow against the equity you've actually invested (deposit + closing costs). If you're financing with a mortgage, your cash-on-cash return can be significantly higher than the net yield due to leverage — but it also carries more risk if rates rise or rents fall.
What costs can I pass on to tenants (umlagefähige Kosten)?
Under the Betriebskostenverordnung (BetrKV), you can pass on operating costs like water, heating, waste collection, street cleaning, building insurance, Grundsteuer, and common area maintenance. You cannot pass on costs for property management (Verwaltung), the Instandhaltungsrücklage (maintenance reserve), or mortgage payments.
How does vacancy affect my rental yield?
Vacancy directly reduces your effective rental income. Even in tight markets like Munich or Berlin, you should budget 2–3% vacancy allowance to account for tenant turnover, renovation periods between tenancies, and the occasional rent-free month for new tenants. In less competitive locations, 5–10% may be more realistic.
Should I include Sondertilgung (extra repayment) in the calculation?
This calculator focuses on the standard annuity payment (Annuitätendarlehen). Sondertilgung is additional principal repayment that reduces your loan balance faster but doesn't change your regular monthly obligation. Use our mortgage calculator to model the impact of Sondertilgung on your total loan cost.
How does depreciation (AfA) affect my real return?
German tax law allows you to depreciate the building portion of your rental property — 2% per year for post-1924 buildings, 2.5% for pre-1925, or 5% degressive for new builds completed after 2023. This depreciation offsets rental income for tax purposes, significantly improving your after-tax return. This calculator shows pre-tax returns; consult a Steuerberater for the full tax picture.
How to Use This Rental Yield Calculator
1. Enter Purchase Price & Rent
Start with the Kaufpreis (purchase price) and the expected monthly Kaltmiete (cold rent, excluding Nebenkosten). Check the local Mietspiegel for a realistic rent estimate. The calculator instantly shows your gross yield.
2. Add Non-Recoverable Costs
Enter the costs you cannot pass on to tenants: the non-recoverable portion of Hausgeld (typically 30–50%), Grundsteuer, building insurance, and a vacancy allowance. These reduce your gross yield to a realistic net yield.
3. Configure Financing
If you're using a mortgage, enter the Darlehensbetrag, interest rate, and repayment rate. The calculator shows your monthly payment, cash flow, and Eigenkapitalrendite (cash-on-cash return) after debt service.
4. Compare & Decide
Switch between the yield overview and cash flow tabs. Compare your property's return against savings accounts, bonds, and equities. Use the mortgage calculator for detailed amortization schedules.
Understanding Rental Yield for German Property Investments (2026)
Rental yield is the most fundamental metric for evaluating a buy-to-let property in Germany. While capital appreciation matters long-term, yield determines whether your property generates positive cash flow from day one — or whether you're subsidising your tenants every month.
The Bruttomietrendite (gross rental yield) is a quick comparison tool: annual Kaltmiete divided by purchase price. It ignores costs and financing, making it useful only for initial filtering. The Nettomietrendite (net rental yield) is far more meaningful — it accounts for non-recoverable costs like Hausgeld (Verwaltung + Instandhaltungsrücklage), vacancy, and Grundsteuer, measured against the full capital deployed including closing costs.
For leveraged investors, the Eigenkapitalrendite (cash-on-cash return) is the number that matters most. It measures annual cash flow against the equity you've actually invested — your down payment plus Kaufnebenkosten. With current mortgage rates of 3.3–3.8% for 10-year fixed, properties yielding 4.5%+ net can generate attractive leveraged returns, while those yielding below 3.5% may produce negative cash flow.
Remember that this calculator shows pre-tax returns. private landlords benefit from depreciation (AfA) that can significantly reduce taxable rental income — especially the 5% degressive AfA available for new builds completed after 2023 (§ 7 Abs. 5a EStG). A property that looks marginal before tax may be attractive after factoring in depreciation. Use our mortgage calculator to model the financing side in detail.